Question
Listed below are a few transactions and events of Maxum Company. 1. Employees earn vacation pay at a rate of one day per month. During
Listed below are a few transactions and events of Maxum Company.
1. Employees earn vacation pay at a rate of one day per month. During December, 33 employees qualify for one vacation day each. Their average daily wage is $150 per employee.
2. During December, Maxum Company sold 4,600 units of a product that carries a 60-day warranty. December sales for this product total $136,000. The company expects 9% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $12.
Prepare any necessary adjusting entries at December 31, 2015, for Maxum Companys year-end financial statements for each of the above separate transactions and events.
Employees earn vacation pay at a rate of one day per month. During December, 33 employees qualify for one vacation day each. Their average daily wage is $150 per employee. Record the related adjusting entry.
During December, Maxum Company sold 4,600 units of a product that carries a 60-day warranty. December sales for this product total $136,000. The company expects 9% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $12. Record the related adjusting entry.
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